Core Viewpoint - A securities class action has been filed against Klarna Group plc, focusing on alleged violations of federal securities laws during its September 2025 IPO, where over 34 million shares were issued at $40 each [1][2][3]. Group 1: Legal Action and Allegations - The lawsuit seeks to represent investors who acquired Klarna securities during the IPO and claims that the offering documents were misleading regarding credit risks [2][3]. - The complaint highlights that Klarna's statements about its credit modeling and scoring performance were deceptive, as they downplayed the risks associated with lending to financially unsophisticated clients [3][4]. Group 2: Financial Performance and Market Reaction - Klarna reported a significant 102% year-over-year increase in its provision for credit losses in Q3 2025, alongside a material rise in operating losses, which led to a sharp decline in its share price to $31.63, approximately 20% below the IPO price [4][5]. - The spike in credit loss provisions raises questions about the transparency of Klarna's risk disclosures at the time of the IPO [5].
Klarna Group (KLAR) Hit With IPO-Related Securities Class Action Amid 102% Spike in Credit Loss Provision, Questions About Risk-Related Trends Disclosures - Hagens Berman